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HomeMy WebLinkAbout2007-06-12 - AGENDA REPORTS - MC 04-325 HMNMH MP (2)PUBLIC HEARING DATE:. SUBJECT: DEPARTMENT: Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT Lisa Hardy City Manager Approval: Item to be presented by: June 12, 2007 MASTER CASE 04-325, HENRY MAYO NEWHALL MEMORIAL HOSPITAL MASTER PLAN Community Development PURPOSE & AGENDA OF MEETING The formal public hearing process before the Santa Clarita City Council for the Henry Mayo Newhall Memorial Hospital (HMNMH) Master Plan will begin this evening. At this meeting, the City Council will receive multiple presentations on the proposal and extensive public testimony. Specifically, the agenda for tonight's public hearing on the HMNMH Master Plan will include the following components: 1. The City Council will first receive a three-part presentation from City staff on the project components to include a presentation by Kurt Salmon Associates regarding the findings of. the independent study. 2. Staff s presentation will be followed by a presentation from the HMNMH applicant team. 3. The formal presentations will be followed by testimony from the public, both in support of and in opposition to the master plan proposal. 4. Following public testimony, the City Council will have an opportunity to ask questions of staff and the applicant team and provide direction to staff on various aspects of the proposal. It is expected that the public hearing will be continued to the June 26, 2007, City Council meeting. For the June 26th meeting, staff will be prepared to report on any follow-up items or direction received by the City Council at tonight's hearing. Action items that require additional time may be presented at the July 10, 2007 City Council meeting, if needed. ContinuedToiab, ata, C%+e CSG► BACKGROUND Planning Commission Action The HMNMH Master Plan was first presented to the Planning Commission on July 19, 2005, with a site tour, and the public hearing process commenced on October 18, 2005. After two site tours and seven public hearings on the item, final action was taken by the Planning Commission on February 6, 2007. In a 3-2 vote, the Planning Commission made a recommendation of approval to the City Council for a revised Master Plan project and certification of the Final Environmental Impact Report. The Planning Commission's action included the condition that, if the independent study demonstrates that the revised project's hospital space necessitates the proposed level of medical office space for a viable hospital campus, that the City Council support the revised master plan as currently proposed; or, if the independent study states that the level of medical office space exceeds that which is needed for hospital operations, the City Council consider a reduction in the amount of medical office space. Also, the Planning Commission voted 5-0 to deny the request for the Development Agreement based on the fact that there were no clear benefits to the City above and beyond what would be provided by the increased level of medical service provided through the HMNMH Master Plan. The Commission's action on the Development Agreement was a final action; therefore, this specific entitlement is on appeal to the City Council by HMNMH. New Reduced Master Plan Project Proposal Since the Planning Commission process completed in February 2007, discussions have continued to take place between the HMNMH applicant team, the community, and the City. In response, the HMNMH applicant team submitted a letter to the City dated May 10, 2007, requesting that the City Council consider a new reduced master plan project which eliminates all medical office buildings and hospital buildings from the Build -out Phase of the Master Plan. The table below shows the project's progression and reductions in square footage that have occurred through the process. * The net new square footage totals include existing building space to be removed. ** Parking structures are not reflected in the square footage totals listed above. *** The +/-10,000 sq. ft. central plant is reflected in the hospital space totals above. Master Plan Concept A New Entitlement Approval Package Entitlements & CEOA Compliance The new reduced project limits the Master Plan to the buildings, structures and other site modifications originally included in Phase 1 and Phase 2 of the proposal, only. The third phase, or Build -out Phase, of the project is removed from the HMNMH Master Plan. If at such future time during the term of the Development Agreement, the applicant decided to proceed with an additional phase, in addition to other entitlements, an amendment to the HMNMH Master Plan requiring CEQA analysis and City Council approval would be required. CEQA analysis would be necessary to fully understand the environmental conditions at the time, what impacts may result, and what mitigation measures are appropriate. For the Master Plan proposal before the City Council, the Statement of Overriding Considerations, then, would continue to be focused on the environmental impacts resulting from implementation of Phase 1 and 2 facilities. Master Plan The HMNMH Master Plan grants a long-term approval for a series of improvements to occur on the existing hospital campus. The Master Plan is a way to ensure the orderly, efficient, long-term growth and evolution of a campus facility where daily operations are compatible and interrelate with one another. This planning tool helps to avoid uncoordinated, piecemeal development and the need to demolish facilities to construct new buildings in the future. Building square footage, Total Net Hospital Medical Total Square New Square Space*** Office Space Footage at MP Footage* Completion** Original MP 583,619 sq. ft. 322,839 sq. ft. 290,000 sq. ft. 916,611 sq. ft. Project (w/ 5 parking structures) PC MP Project 504,219 sq. ft. 322,839 sq. ft. 200,000 sq. ft. 837,211 sq. ft. Recommendation (w/ 5 parking structures) Reduced MP 327,363 sq. ft. 135,363 sq. ft. 200,000 sq. ft. 660,355 sq. ft. Project (w/ 4 parking structures) * The net new square footage totals include existing building space to be removed. ** Parking structures are not reflected in the square footage totals listed above. *** The +/-10,000 sq. ft. central plant is reflected in the hospital space totals above. Master Plan Concept A New Entitlement Approval Package Entitlements & CEOA Compliance The new reduced project limits the Master Plan to the buildings, structures and other site modifications originally included in Phase 1 and Phase 2 of the proposal, only. The third phase, or Build -out Phase, of the project is removed from the HMNMH Master Plan. If at such future time during the term of the Development Agreement, the applicant decided to proceed with an additional phase, in addition to other entitlements, an amendment to the HMNMH Master Plan requiring CEQA analysis and City Council approval would be required. CEQA analysis would be necessary to fully understand the environmental conditions at the time, what impacts may result, and what mitigation measures are appropriate. For the Master Plan proposal before the City Council, the Statement of Overriding Considerations, then, would continue to be focused on the environmental impacts resulting from implementation of Phase 1 and 2 facilities. Master Plan The HMNMH Master Plan grants a long-term approval for a series of improvements to occur on the existing hospital campus. The Master Plan is a way to ensure the orderly, efficient, long-term growth and evolution of a campus facility where daily operations are compatible and interrelate with one another. This planning tool helps to avoid uncoordinated, piecemeal development and the need to demolish facilities to construct new buildings in the future. Building square footage, building height and orientation, vehicular and pedestrian circulation, on-site parking, and landscaping are major development components that can be determined through a master plan. Development of 10- 20- and 25 -year master plans is a typical exercise for educational, medical and corporate campus settings. The City established the Master Plan entitlement through the 2004 Unified Development Code amendments in anticipation of several projects that could benefit from this planning tool. City staff encouraged the HMNMH applicant team to consider applying for consideration of a Master Plan following their initial application for a Conditional Use Permit in August 2004. In response to staff s encouragement, the HMNMH applicant team modified their entitlement request in early 2005 to include the Master Plan along with the Conditional Use Permit. New Approach to Development Agreement Planning Commission's Determination As stated earlier in this agenda report, the Planning Commission denied the applicant's request for a Development Agreement, finding that the Agreement did not provide a clear and substantial public benefit above and beyond the provisions of the proposed project and the conditions, mitigations and requirements tied to implementation. The intent and purpose of a Development Agreement is to achieve a higher level of public improvement and benefit beyond what can be accomplished by mitigating the development's impact through conditions of approval. The Commission determined that, specific to this master plan project, all of the public benefits and improvements were being required via the conditions of approval and, therefore, a Development Agreement was not needed in order for the City to obtain these benefits. Opyortunity for New Development Agreement As part of the City Council's consideration of the proposed project, the Council may wish to entertain a revised Development Agreement that incorporates measures to control the timing and sequencing of facilities and improvements, both on-site and off-site. In this way, the Development Agreement could be a tool available to the Council and a mechanism to negotiate the delivery of enhanced medical services for the Santa Clarita community. As part of tonight's public hearing, staff will seek direction from the Council regarding its interest in pursuing a revised Development Agreement with the HMNMH applicant team, or if the Council wishes to uphold the Planning Commission's denial of the Agreement in its present form. A revised preliminary draft Development Agreement is available for the Council's review and discussion purposes. ENTITLEMENTS REQUESTED Briefly, the entitlement requests before the City Council comprise the following: 1. A Master Plan is requested for the approval of a series of improvements on the HMNMH campus. The applicant, Henry Mayo Newhall Memorial Hospital and G&L Realty, propose a master plan to guide future development of the campus facilities. Approval of Master Plan 04-022 would allow the construction of the following facilities: one six -level inpatient building (five levels above ground); three three-story medical office buildings; four multi-level parking structures; reconfiguration of existing hospital space for 20 intensive care unit beds; the demolition of the 8,000 square -foot Foundation building; construction of a central plant facility and two helipads; and the removal of surface parking. A more detailed description of the proposed facilities is provided later in this agenda report. 2. A Conditional Use Permit is requested to allow specific buildings and parking structures to exceed 35 feet in height. Specifically, Medical Office Buildings 1, 2 & 3 would be 45.5 feet to the top of the parapet and 51.5 feet to the top of the screen and roof access. Inpatient Building A would be 85 feet to the top of the parapet and 100 feet to the top of the helipad wind sock and elevator shaft. Parking Structure 1 would be 47 feet in height at the top of the parapet, 49.5 feet to the top of the parking lot lights, and 60.5 feet in height at the top of the helipad wind sock. Parking Structure 2 would range from 47 feet at the top of the parapet to 49.5 feet at the top of the parking lot lights. Parking Structure 4 would extend to 36.5 feet at the top of the elevator shaft. Parking Structures 3 is below the 35' height limit and would not be considered as part of the Conditional Use Permit. 3. A Development AQxeern is requested to allow for a maximum 20 -year implementation period for the Master Plan. The Development Agreement request was denied by the Planning Commission on February 6, 2007, and this action is now on appeal to the City Council. 4. Review and certification of the Final Program Environmental Impact Report and adoption of a Statement of Overriding Considerations is requested for the project. NEW REDUCED MASTER PLAN PROJECT Existing Campus Facilities & Operations Operational since 1975, HMNMH is a 230 -bed, full-service community hospital that provides advanced life support services on 30.39 acres of land. Currently, HMNMH is the only hospital in the Santa Clarita Valley and serves a population of more than 237,000 people in 680 square miles, including the Interstate 5 corridor to Gorman. In 2006, the facility admitted more than 11,525 inpatients and recorded more than 72,247 outpatient visits. They currently employ approximately 1,200 people, making it one of the largest employers in the region. The hospital operates the only 24-hour Emergency Department in the Santa Clarita Valley, handling approximately 42,000 patients annually. In addition, the hospital is designated as a trauma center and receives patients from areas outside the service area, especially during major injury events. Other services include inpatient and outpatient surgery, woman's services, intensive care, definitive observation care, telemetry, oncology service, acute and outpatient rehabilitation services, transitional care, digital breast imaging, a behavioral health unit, a gastroenterology laboratory, and an outpatient infusion center. A number of medical office buildings, both on- and off-site, provide support to the hospital facility. Currently, there are six existing medical office buildings, along with the foundation building. To the northeast of the campus are two existing medical office buildings totaling 99,297 square feet, which use hospital services and provide hospital lease space within the buildings. These buildings are off-site and not included as part of the master plan proposal. Specifically, the existing 332,992 square foot HMNMH medical campus is comprised of the following facilities: 1. The main hospital facility comprises approximately half of the on-site buildings with 146,000 square feet. There are 121 beds currently in this facility along with the Emergency Department. 2. The Nursing Pavilion totals 63,800 square feet with 109 hospital beds and outpatient facilities. 3. The Central Plant and basement facility comprise 16,989 square feet and include the mechanical operations of the hospital in these two structures. 4. There are six medical office buildings on the western portion of the campus. These office buildings comprise 89,081 square feet of floor area. 5. The Hospital Foundation currently occupies 8,000 square feet of modular office space on the far western portion of the site. 6. A 9,122 square -foot hospital bridge is currently completing construction which will link the main hospital building to the Nursing Pavilion. All of the existing structures on the hospital campus range in height from one to three stories with the highest structure measured at approximately 45 feet tall. The existing floor area ratio (FAR) is 0.25:1. There are currently 972 surface parking spaces throughout the hospital campus and approximately 43 percent of the site is landscaped. An at -grade helipad located at the rear portion of the campus near the emergency room had been operational since 1975. Helipad operations were discontinued in summer 2005 due to construction activities near the helipad site. Proposed Campus Facilities The project request before the City Council will increase the existing square footage of the hospital campus from 332,992 square feet to 660,355 square feet, a 327,363 net square -foot increase. Specifically, the entitlement request before the City Council includes the following facilities: New Hospital & Medical Office Buildings 1. A three-story, '80,000 square -foot medical office building (MOB 1) adjacent to the intersection of Orchard Village Road and McBean Parkway. This building will be 45.5 feet in height to the top of the parapet and 51.5 feet to the top of the screen and roof access; 2. A five -story (plus basement), 125,363 square -foot, 120 -bed inpatient hospital building located in the central portion of the campus. This building will be 85 feet in height to the top of the parapet and 100 feet in height to the top of the wind sock and elevator shaft. This building will also include a rooftop helipad; 3. A three-story, 60,000 square -foot medical office building (MOB 2) along the westerly portion of the site along the existing ring road. This building will be 45.5 feet to the top of the parapet and 51.5 feet to the top of the screen and roof access; and 4. A three-story, 60,000 square -foot medical office building (MOB 3) along the westerly portion of the site along the existing ring road. This building will be 45.5 feet to the top of the parapet and 51.5 feet to the top of the screen and roof access. Parking Structures 1. A six -level (five levels above ground), 750 -space parking structure (PS 1) along ' the McBean Parkway frontage. The parking structure height will be 47 feet to the top of the parapet, 49.5 feet to the top of the parking lot lights, and 60.5 feet to the top of the wind sock. This parking structure will also include a rooftop helipad; 2. A six -level (five levels above ground), 579 -space parking structure (PS 2) in the northwestern portion of the campus. The parking structure height will be 47 feet to the top of the parapet and 49.5 feet to the top of the parking lot lights. A solid wall along the western fagade of the parking structure will be provided prior to construction of Parking Structure 3. Parking Structure 3 will connect directly to Parking Structure 2; 3. A four -level (three levels above ground), 278 -space parking structure (PS 3) in the northwestern corner of the campus. The parking structure height will be 26 feet to the top of the parapet, and 30 feet to the top of the parking lot lights. A solid wall along the western fagade of the parking structure will be provided; and 4. A 4.5 -level (2.5 levels above ground), 439 -space parking structure (PS 4) to be located along McBean Parkway between MOB 1 and PS 1. The parking structure height will be 26 feet to the top of the parapet, 30 feet to the top of the parking lot lights, and 36.5 feet to the top of the elevator shaft. Other HMNMH Campus Modifications 1. The reconfiguration of 9,770 square feet of current administration space in the existing hospital building to accommodate 20 intensive care unit hospital beds. These hospital administrative functions will move to Medical Office Building 1; 2. The demolition of the 8,000 square foot Foundation building to accommodate Medical Office Building 3; 3. A 26 -foot -high, 10,000 square -foot central plant facility to be located just east of Inpatient Building A and immediately adjacent to the facilities building; and 4. The elimination and reconfiguration of surface parking spaces. A total of 243 on-site surface parking spaces will be provided. On-site Parking Existing on-site, surface parking spaces on the HMNMH campus total 972 parking spaces. As part of the Conditions of Approval, the project is required to provide the appropriate number of on-site parking spaces per the specifications of the Unified Development Code for hospital space and medical office space. This will be accomplished with some surface parking (243 spaces) and the construction of four parking structures, as listed above. The first 750 -space parking structure will be located along McBean Parkway. Parking Structures 2 and 3 will be located in the northwestern portion of the campus and will provide a maximum of 857 parking spaces. Parking Structure 4 would provide 439 spaces. Required on-site parking is 2,152 spaces. With full project implementation, 2,289 on-site parking spaces will be provided, to include 79 handicapped parking spaces. Therefore, the project provides the required number of on-site parking spaces. At the present time, the applicant has not requested that the parking structures be gated, which would require approval of a Minor Use Permit. Helipad Locations & Operations Helipad History & Operations An at -grade helipad located on the northeastern portion of the campus became operational with the opening of the HMNMH in 1975. In recent years, helipad operations averaged 10 to 12 arrivals and departures per month (or 120 to 144 trips annually). Major helicopter service providers that use the helipad for emergency transport operations include L.A. County Fire Department, L.A. County Sheriffs Department, Mercy Air, and Ventura County Sheriffs Department - Search & Rescue. Cal City Air Ambulance, who was among the operators using the at -grade helipad in 2004, has since gone out of business. The Los Angeles County Fire Department is the heaviest user of the hospital helipad, reporting a total of 95 helipad operations in 2004. The Ventura County Sheriffs Department - Search and Rescue report that they use the HMNMH helipad approximately 25 times per year. Many of these trips are due to serious injuries that occur at the Hungry Valley Off -Road Vehicle Park located off Interstate 5. The L.A. County Sheriffs Department reports that less than one helicopter operation occurs at the HMNMH every month. This is due to the fact that L.A. County Sheriffs Department flight operations occur mainly in eastern Los Angeles County and primarily use the Huntington Memorial Hospital. Mercy Air operations occur primarily for cardiac transport out of the Santa Clarita Valley during heavy freeway traffic periods and also to Children's Hospital in Los Angeles. The HMNMH is now working toward the construction and operation of a cardiac care unit as part of their existing hospital operations. This medical service enhancement may reduce the need for air transport for cardiac patients in the future. Present Conditions & Recent City Approvals Currently, HMNMH is functioning without a helipad, a requirement to be considered a trauma center by Los Angeles County. In September 2005, the at -grade helipad, which had been operational since 1975, was made unusable by the construction of the State -required connection between the main hospital building and the Nursing Pavilion, as well as the construction of the emergency room addition. In December 2004, the Planning Commission approved the relocation of the helipad to an above -ground structure adjacent to the emergency room. This elevated structure was to be 34 feet in height and was to be temporary based upon the approval and completion of subsequent patient buildings. The Minor Use Permit approval is valid until December 2007. After input from OSHPD, the state agency that conducts hospital review, the cost of the structure escalated to be cost prohibitive as a temporary structure and HMNMH decided to explore other alternatives. Master Plan Helipad Proposal As part of the entitlement package, HMNMH is proposing to construct two separate above -grade helipads. The first helipad would be constructed on the roof of Parking Structure I to be built along McBean Parkway. With the parking structure slated to be one of the first facilities in place, this would allow the resumption of emergency air ambulance service in the most time efficient manner. A designated elevator would be constructed to transport patients from the parking structure roof to the ground level where they would be transported by an on-site vehicle around the ring road and into the hospital building. This near-term helipad location would be approximately 250 feet from the nearest residence across McBean Parkway. The second helipad location would be on the roof of Inpatient Building A, which is designed to be approximately 85 feet high and approximately 350 feet from the nearest residence within the Summit community. The placement of a helipad at this location would allow for the most efficient transport to the emergency room as the roof would be equipped with a direct elevator connection. This would be the ultimate location for the helipad. HMNMH is requesting that the initial helipad to be built on Parking Structure 1 be allowed to remain once the ultimate inpatient building helipad is constructed. This is for two reasons: to keep a secondary helipad for use during a major disaster/emergency; and for use during future construction activities on the hospital campus that may temporarily preclude use of the Inpatient Building helipad due to aeronautical safety concerns. Outside of these two situations, both helipads would not be operational at the same time. Future Helipad Operations Helipad operations are expected to increase from 10-12 trips per month to 15-17 trips per month, as analyzed in the Program EIR. As explained above, the helipad would be located on a parking structure initially, and ultimately on the inpatient building. There would be a slight increase in helicopter -related noise from the noise levels measured during helicopter operations in 2004. The EIR states that increase would be 1.5 dBA based on a 24 hour CNEL at the closest monitoring site. This amount is not generally considered to be perceptible. In addition, the placement of the helipad on top of the patient tower will reduce the length of each flight and reduce the canyon effect, thereby reducing the amount of noise heard in the surrounding neighborhood. Therefore, the EIR concludes that the impacts of the helipad are considered less than significant. Master Plan Phasing Several phasing plans have been presented throughout the course of the entitlement process for the HMNMH Master Plan. Staff has worked with the applicant team to reduce the size of the master plan proposal and to eliminate confusion as it relates to phasing. With the new reduced Master Plan, the distinction between Phase I and Phase 2 becomes less relevant. Instead, the sequencing of improvements and facilities throughout project implementation can best be regulated through a revised Development Agreement and Conditions of Approval for the Master Plan. These options are discussed later in this agenda report. Architecture — McBean Parkway Frontage The applicant and their architects have worked with staff for several months to enhance the architecture of the initial structures to be built. After staff review, the plans were transmitted to RRM Design Group, the City's architectural consultant, for their review. The design intent of the Henry Mayo Newhall Memorial Hospital Master Plan is to be compatible with the surroundings, while at the same time establishing a distinctive identity for the campus. The two projects fronting McBean Parkway, Medical Office Building 1 and Parking Structure 1, employ common design motifs to impart a unified look to the street edge. The colors echo the earthy tones of the retail and commercial establishments further along on McBean Parkway, with the use of a darker accent color for sun screens, stair towers, and an entrance canopy. Both Medical Office Building 1 and Parking Structure 1 are articulated in such a way as to set up vertical rhythms that express the structure and break up the lengths of the buildings. The use of elements such as sun screens give a sense of depth and impart a human scale while adding visual interest. The color palette and materials for Medical Office Building 1 (exterior plaster finish with curtain -wall cladding) strive for a timeless, yet contemporary, quality. In relation to the parking structure, the consultant provided a number of recommended changes including: modifications to the color palette to allow for better buffering with landscaping; emphasis on the horizontal lines; changes to the color of the arbor structure; and the insertion of mullion -like structures to mimic windows. Landscaping Currently, 43 percent of the project site is landscaped with mature vegetation. The parking areas contain a large amount of sycamore trees while the slope that separates the hospital campus from the Valencia Summit community is planted with pine trees. The applicant is not proposing to remove any of the landscaping outside of the rear access road and will retain this landscape buffer. However, within the project area, a number of trees would be removed, including several trees along the McBean Parkway frontage for traffic improvements. The applicant proposes to replace a number of the trees on-site and any reconfigured surface parking areas would meet the City standards for parking field landscaping. Existing mature trees that will screen parking lots and parking structures are retained wherever possible. Along the western property line, adjacent to the Village North homes, the applicant will plant additional trees within four months of project approval so that the trees can begin to establish themselves prior to construction occurring in that area. Green screens at Parking Structure 1 will be provided to accentuate and carry over the vertical rhythms of Medical Office Building 1, while softening the impact of the fagade along McBean Parkway. Landscaping will further soften the impact of massing. On McBean Parkway, the existing Liquidambar are supplemented with Canary Island Pines to provide a tall narrow screening tree adjacent to the proposed parking lot and parking structure. Small flowering accent trees, such as Flowering Plums, are used at corners and entries to define these areas. Deciduous London Plane Trees are used along interior streets to create a uniform edge and visibility to the facilities to facilitate way finding. Evergreen Elms are used as a canopy tree in parking lots to provide shade. CEQA Findings & Impact Mitigation The Draft Final Program Environmental Impact Report includes: (1) an analysis of potential impacts across 17 environmental areas; (2) agency comments and responses to comments throughout the course of the public hearing process to date; (3) the Mitigation Monitoring and Reporting Program; and, (4) an errata to the Final EIR reflecting the reduced master plan proposal and other minor revisions to the impact analysis sections. All mitigation measures across the environmental categories for short-term, long-term and cumulative impacts are listed in the Mitigation Monitoring and Reporting Program. With the exception of the four areas listed below, the EIR concluded that all remaining environmental impact areas either had no impact or could be reduced to a less -than -significant level with mitigation measures. Statement of Overriding Considerations (SOC) The CEQA analysis determined that impacts would occur in four environmental categories that could not be reduced to less than significant level. These include: Aesthetics, Light and Glare; Traffic and Circulation; Air Quality; and Solid Waste. The four categories are further described below: L Aesthetics, Light, and Glare: Project implementation will result in long-term, project -related visual impacts due to intensification of on-site development to include multi -story buildings and parking structures in areas currently used for surface parking. The project will change the view of the site from surrounding properties, and contribute to cumulative aesthetics, light, and glare impacts from intensification of urban development in the area. NOTE: With the current Master Plan proposal, all buildings would be three stories in height, with the exception of the five -story (plus basement) Inpatient Building A located in the central portion of the campus. Throughout the Planning Commission hearing process, additional measures were taken to further mitigate the change from surface parking to buildings and parking structures throughout the campus. Additional building setbacks, increased height step -backs, overall reduced building heights, and building forms designed to blend with the surrounding terrain to the maximum extent possible were incorporated. However, the change from no development to development, in and of itself, cannot occur without a visible alteration to the HMNMH campus environment, warranting a statement of overriding considerations. 2. Traffic and Circulation: Two off-site traffic -related impacts at specific locations cannot be immediately addressed through project implementation. These include (1) project -level (Phase 2) and cumulative impacts to the eastbound approach at the McBean Parkway/Orchard Village Road intersection; and (2) project -level impacts to the westbound and eastbound approaches at the Valencia Boulevard/Magic Mountain Parkway intersection. More specifically, a right -turn lane is needed at the McBean Parkway/Orchard Village Road intersection which requires additional right-of-way. Acquisition of additional right-of-way is physically precluded by an existing single-family residential neighborhood. NOTE: The Town Center East Expansion Project, which is currently before the Planning Commission and is scheduled for final action by the Commission in July 2007, is required to complete the Valencia Boulevard/Magic Mountain Parkway intersection improvements as part of its conditions of approval. Therefore, although the SOC for the HMNMH Master Plan project will continue to list this intersection as unmitigated, this improvement will occur through a separate development. 3. Air Oualit : Short-term impacts would occur during construction associated with construction -related emissions that exceed the SCAQMD significance thresholds for NOx and PMio during site grading, NOx during peak -day construction activities and ROC during architectural coating application activities. Also, project -level impacts would occur related to consistency with the most recently adopted SCAQMD Air Quality Management Plan. 4. Solid Waste: Short-term impacts would occur during construction, as well as long-term project -level and cumulative impacts associated with sending more solid waste to Los Angeles County landfills, further limiting their finite capacities. The positive impacts of project implementation that the Council could weigh as part of its consideration of overriding factors that justify implementation of the HMNMH Master Plan include: • Needed medical facilities to meet HMNMH's share of the projected medical service needs in the Santa Clarita Valley for the next 20 years. The proposed expansion would allow for additional hospital beds, additional technologies and medical service capabilities on -campus, increased specialties and number of physicians on-site, and increased safety and accessibility for emergency air transport operations. • Ability of the HMNMH to maintain its status as a trauma center with the provision of an on-site helipad. • Creation of 385 new permanent employment positions, which will help balance the ratio of jobs -to -housing in the Santa Clarita Valley. • Enable HMNMH to maintain its competitiveness, and therefore its viability, in the market for medical care. Whether or not a second hospital locates in the Santa Clarita Valley at a future time, it is critical that HMNMH remain highly competitive as it creates a higher standard of medical services provided within the Valley. Accessible and enhanced medical care is a major factor in the overall quality of life that a community offers its residents. KSA INDEPENDENT STUDY FINDINGS Scope of Work The City Council commissioned an independent study in April of 2007 to study whether the proportion of the medical building space to hospital space, as proposed with the HMNMH Master Plan, is appropriate. In addition, as part of its recommendation, the Planning Commission requested that, as part of the independent study, that any medical service provider / facility contacted as part of the study be asked if their group has plans to locate within the Santa Clarita Valley in the future. Kurt Salmon Associates (KSA), the consulting firm selected to conduct the analysis, has prepared a report titled Master Facility Plan Review — Henry Mayo Newhall Memorial Hospital (attached) with their findings regarding the proportionality of the proposed hospital space and medical office space. Also, as part of KSA's scope of work, inquiries were made of other medical care providers in the Southern California region regarding their plans or 'intent to establish a facility in the Santa Clarita Valley. This information is not part of the Master Facility Plan Review, but will be presented during KSA's presentation to the City Council. Conclusions & Expert Opinions A detailed consultant presentation will be provided at tonight's City Council meeting. In short, KSA made the following key conclusions on page 18 of their report regarding the revised HMNMH Master Plan proposal: 1. The scale of the project is appropriate with respect to the number of inpatient beds given expected market demand and hospital strategic goals through 2025. 2. The facility expansion plan does not provide enough hospital space for inpatient services given the number of inpatient beds and current planning standards. If this is not addressed adequately, the competitiveness of the hospital may be impacted. 3. The planned medical building space is appropriate given the strategic plans of the organization: • Projected growth and increasing competition will require a larger medical staff on campus. A medical building will ease their recruitment. • Relocating administrative services out of more expensive hospital space is an appropriate and common strategy. • Centers of Excellence initiatives are an important strategy component in today's competitive health care market. At completion of the HMNMH Master Plan, 289,081 square feet of medical office space will be available on the project site. Based on information provided by HMNMH, KSA considered two key variables in making its findings: (1) HMNMH will occupy 89,000 square feet of on -campus medical office space for administrative purposes; and (2) the Centers for Excellence will occupy 61,400 square feet of on -campus medical office space for cardiac services, orthopedic and spine care, a cancer center, women's services, and imaging. Added together, 150,400 square feet of medical office space would be used for services other than private physician practices. KSA concludes that if 150,000 square feet is used for the administrative functions and Centers for Excellence services identified above, then the campus will be just shy (3,550 square feet) of accommodating 20 percent of HMNMH physicians on the campus. This is less than the 21 percent of HMNMH physicians currently accommodated on the campus. DEVELOPMENT AGREEMENT Santa Clarita Community Benefits & Assurances Following the Planning Commission's denial of the Development Agreement and the applicant's appeal of this matter to the City Council, City staff has drafted with the HMNMH applicant team a new preliminary draft Development Agreement (attached to this agenda report) that the City Council may use for discussion purposes during the course of the public hearing process. The HMNMH applicant team has also reduced the term of the requested Development Agreement from a maximum of 25 years to 20 years. Modifications have also been made to the draft document to provide greater benefit to the Santa Clarita community, which are above and beyond the benefits provided directly through implementation of the Master Plan. The Development Agreement is also a mechanism to control the sequencing of on- and off-site improvements and to further restrict the on-site uses to target the community's needs., Generally, the topics include: • Expanded medical services tied to specific buildings with an implementation timeframe; • Completion of all Traffic Mitigation Improvements prior to the issuance of the first .building Certificate of Occupancy; • Restrictions on uses and tenants for the medical office buildings; • Requirements for hospital usage of medical building space; • Control on the sequencing of on-site improvements; • Requirements for a parking study following the occupancy of buildings to determine whether on-site parking needs are met and whether Parking Structure 4 is required; and • Continued participation by HMNMH on the TCU Committee and contribution of funds to support the siting and construction of a TCU facility. Specific medical services that will be secured through the Development Agreement include: • Intensive care bed expansion by 50 percent in an improved critical care center; • Neonatal intensive care services; • Women's services unit; • Inpatient operating room capacity expansion by 50 percent; • Additional post coronary care private rooms to complement interventional cardiac services; • Expansion of post-surgical care services with additional private room accommodations; and • Replacement and expansion of campus educational and training facilities for HMNMH staff and community health education. HMNMH & G&L Valencia, LLC Benefits The Development Agreement would provide HMNMH with certainty of the development rights for a major physical addition to the hospital. This certainty is necessary to improve access to capital for HMNMH as it approaches full project financing for the inpatient building. The certainty provided by the Development Agreement will help HMNMH in securing tax-exempt financing for this facility. More specifically, the Development Agreement has the potential of improving HMNMH's rating, which in turn can help to lower the interest rate and premium for insurance. Increasing HMNMH's ability to secure financing for medical care facilities directly benefits the Santa Clarita Valley community as it will allow expanded medical services to become available within a more expeditious timeframe. COMMUNITY CONCERNS Major Issues During the Planning Commission public hearing process on the Master Plan proposal, a number of residents voiced concerns over the project. One grassroots organization, Smart Growth SCV, was formed by residents of the Summit neighborhood with the issues of the HMNMH Master Plan as its focus. The issues raised by Smart Growth SCV and other Santa Clarita residents include: building height and massing; helicopter and ambulance siren noise; vehicular traffic along McBean Parkway and through the Summit neighborhood; eminent domain; the Development Agreement; over -building of medical office space; and, the relationship between HMNMH and G&L Realty. Residents of the Canyon Country community have also expressed concern over the need for a full-service hospital on the eastern side of the Santa Clarita Valley. Response to Issues Raised The site plan modifications made throughout the course of the public hearing process and the recent square footage reductions to the Master Plan are significant. The square footage of the expansion has been reduced from 583,619 square feet (as originally proposed and analyzed in the Draft EIR) to 327,363 square feet, which is a reduction of 256,256 square feet. The project now entails the construction of four buildings and four parking structures, with a 10,000 square -foot central plant, over a 20 -year period of time. In addition, only one of the four buildings exceeds three stories in height and is located in the central portion of the hospital campus. Other modifications related to building height step -backs from the western property edge, increased horizontal building pad setbacks, and design modifications and landscaping to provide buffers and reduce noise, light and glare impacts directly address the building height and massing concerns of surrounding residential neighborhoods. The City Council commissioned an independent study to evaluate the proportionality of medical office space to hospital/inpatient space in response to the public's concerns regarding the mix of building types and uses proposed for the hospital campus. The results of this analysis are described earlier in this agenda report. Also, all other operations -related impacts, including traffic, will be limited to those impacts identified in Phases I and 2 of the Master Plan only. All Build -out Phase impacts will not occur with the reduced HMNMH Master Plan proposal. Transitional Care Unit (TCU) Issue The Santa Clarita Valley's Transitional Care Unit facility (TCU) is located in the Nursing Pavilion Building within the Henry Mayo Newhall Memorial Hospital campus. The TCU has been there for many years, which is a skilled nursing facility that provides 24-hour medical care for Santa Clarita residents, including seniors that have had surgery or other types of procedures that require additional non-acute assistance from medical personnel. The TCU is not part of the Hospital's acute care facility but an additional separate facility for those who are too well to be in the care of the Hospital's acute care facility, but are not well enough to go home or be in an outpatient care facility. In order to meet the medical care demands of the Santa Clarita Valley, HMNMH needs to upgrade the existing TCU beds to acute care standards to serve the Valley's growing acute care needs. There is great community sensitivity to this conversion as the transitional care service needs cannot be currently met in the Santa Clarita Valley. Thus, in 2006, the City Council formed the Transitional Care Unit Committee that involves Councilmembers, citizens, business professionals and community leaders. HMNMH has been supporting the task force with membership by the Hospital CEO, two Hospital board members, and two Hospital foundation board members. The TCU Committee has meet regularly and is actively working with private skilled nursing home business owners to find a new location for a transitional care unit facility. As part of the Development Agreement for the HMNMH Master Plan, HMNMH would commit $250,000 to assist the TCU Committee to determine the feasibility, siting and construction of a new facility in the Santa Clarita Valley. STAFF RECOMMENDATION / SUMMARY WRAP-UP For the reasons stated in the KSA report, it is important that the City not preclude the ability for future City Councils to consider additional hospital facilities on the HMNMH campus. It is appropriate that there be flexibility to consider expansion(s) in the future as the community's medical needs evolve over time. Therefore, staff supports the current massing and positioning of the proposed buildings and parking structures, including the height of the five -story inpatient building as this configuration is operationally superior to a building layout that is more horizontal in form. It is appropriate that the City Council's right is preserved to judge the circumstances of any hospital expansion in the future. To support a campus configuration today that maximizes the coverage of the buildable area and restricts building height to three stories or less is short-sighted and not supported by staff. Therefore, staff recommends that the City Council approve the requested conditional use permit for building heights in excess of 35'. Also, assuming that the City Council moves forward with a 20 -year Development Agreement and, if during this time period the HMNMH wishes to request an augmentation to the Master Plan, in addition to all other entitlements the City Council will need to review a request for a Master Plan Amendment. This process will involve both the Planning Commission and the City Council, require a full CEQA analysis to ascertain the environmental conditions at the time, and necessitate a public hearing process. The Council can be assured, then, that any proposed increase in hospital campus facilities will be closely scrutinized by staff, the elected and appointed officials, and the public if requested in the next 20 years. Overall, staff finds that the level of campus development to occur over the course of a 20 -year period is reasonable and that the benefits of providing an expanded and enhanced medical campus to meet the medical service needs of the growing Santa Clarita Valley far outweigh the short-term construction -related impacts and operational impacts. Therefore, staff recommends that the City Council support the revised HMNMH Master Plan. Staff also seeks the City Council's direction regarding the preliminary draft Development Agreement. If the City Council wishes to pursue a Development Agreement with the applicant, staff will return to the next City Council hearing on this matter with a revised document that reflects the City Council's direction. ALTERNATIVE ACTIONS Direct staff to prepare documentation to deny the request for the revised HMNMH Master Plan and uphold the Planning Commission's denial of the proposed Development Agreement. 2. Request modifications to the HMNMH Master Plan proposal. 3. Any other action as determined by the City Council. FISCAL IMPACT No direct fiscal impacts, either positive or negative, to the City's General Fund are anticipated at this time. However, the proposal is anticipated to generate 385 new permanent jobs in the City of Santa Clarita. ATTACHMENTS KSA Master Facility Plan Review - May 31, 2007 HMNMH Master Plan Exhibits - June 12, 2007 available in the City Clerk's Reading File Draft Final Environmental Impact Report May 31, 2007 available in the City Clerk's Reading File Development Agreement - October 10, 2006 Preliminary Draft Revised Development Agreement - May 2007 Full record of Planning Commission Materials available in the City Clerk's Reading File NOTICE OF CONTINUED PUBLIC HEARING CITY OF SANTA CLARITA CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita, at its regular meeting held June 12, 2007, continued a public hearing on ITEM 17 Henry Mayo Newhall Memorial Hospital and G&L Realty 23845 through 23929 McBean Parkway within the community of Valencia in the City of Santa Clarita MASTER CASE NUMBER MC 04-325 Master Plan/Conditional Use Permit 04-022 Development Agreement 06-001 A Master Plan and Conditional Use Permit are requested for the approval of a series of improvements on the HMNMH campus. The applicant, Henry Mayo Newhall Memorial Hospital and G&L Realty, propose a master plan to guide future development of the campus facilities. Approval of Master Plan 04-022 would allow the construction of the following facilities: one six -level inpatient building (five levels above ground); three three- story medical office buildings; four multi-level parking structures; reconfiguration of existing hospital space for 20 intensive care unit beds; the demolition of the 8,000 square -foot Foundation building; construction of a central plant facility and two helipads; and the removal of surface parking. A Conditional Use Permit is requested to allow specific buildings and parking structures to exceed 35 feet in height. A Development Agreement is also requested by the applicant. to June 26, 2007. The continued public hearing will be held at or after 6:00 p.m. in the Council Chamber at 23920 Valencia Blvd., Santa Clarita, California. Dated this 13th day of June, 2007. SHARON L. DAWSON, CITY CLERK ############################################################### STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF SANTA CLARITA SS. AFFIDAVIT OF POSTING SHARON L. DAWSON, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that on June 13, 2007, she caused the above notice to be posted at the door of the Council Chamber located at 23920 Valencia Blvd., Santa Clarita, California. SHARON L. 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